Population Aging and Establishment of the Social Security System

Abstract

International experience has shown that population aging will place heavy pressure on the social security system. With the gradual increase in the proportion of the aging population, social security expenditures also increase rapidly, such as medical insurance funds. This issue is particularly prominent in China, as China has a large population base. There are two main reasons for the increasing aging population of China: first, the average life expectancy has generally increased with the gradual improvement of medical standards and living standards; second, the fertility rate has decreased since the long-term implementation of family planning policy. With lower infant birth rate than the death rate, and the declining number of new laborers year by year, the proportion of the elderly gradual increases.